Glycyrrhiza glabra L., commonly known as liquorice or licorice, is an important medicinal plant belonging to the family Fabaceae and has been used traditionally for centuries in various systems of medicine. The therapeutic potential of liquorice is largely attributed to its diverse phytochemical constituents, particularly triterpenoid saponins, flavonoids, isoflavonoids, chalcones, phenolic compounds and polysaccharides. Glycyrrhizin, glycyrrhetinic acid, liquiritin, liquiritigenin, isoliquiritigenin, glabridin and glabrene are among the major bioactive constituents associated with its pharmacological effects. Increasing experimental evidence suggests that G. glabra possesses a broad spectrum of pharmacological activities, including anti-inflammatory, antioxidant, antiviral, antimicrobial, hepatoprotective, anticancer, cardiovascular, neuroprotective, gastroprotective, antidiabetic, antifibrotic and immunomodulatory activities. Several of these effects are associated with modulation of oxidative stress, inflammatory mediators, nuclear factor-kappa B (NF-κB), nuclear factor erythroid 2-related factor 2 (Nrf2), apoptotic signalling and other cellular pathways. Liquorice-derived compounds have also attracted attention as potential therapeutic leads for hepatic, respiratory, infectious, gastrointestinal and inflammatory disorders. However, the pharmacological evidence remains predominantly preclinical, and considerable variation exists with respect to plant part, extract composition, dose, standardization and experimental model. In addition, excessive or prolonged exposure to glycyrrhizin and glycyrrhetinic acid may produce mineralocorticoid-like adverse effects, including sodium retention, hypokalemia, hypertension and edema. This review summarizes the phytochemical composition, traditional medicinal applications and major pharmacological activities of G. glabra, with emphasis on the proposed mechanisms of action and its potential for future therapeutic development.